Abstract
The plastic jute sack is one of the most popular rice packaging products in the market. One type of plastic jute sack used is LDPE type. The LDPE sacks used for rice packaging often-experiencing fluctuations in market demand. Fluctuating demand is a certain problem for companies in determining the number of production to meet the demand. It can be seen from the frequent over production companies and stock out at each period. Overproduction problem has an impact to increase production costs. Stock resulted in lost sales experienced adversely affected the company, especially from production cost. Based on the problems, the company must immediately performs an optimal production planning to handle various problems in the company. One method for saving the optimal cost production can be used is dynamic programming. This method aims to obtain the optimal number of production accordance to market demand. This research is done to reduce cost by optimizing number of production. Method that used to solve the problem is dynamic programming. By using this method, the company will obtain optimum production number with minimum production cost and considering total capacity available of the company. From the dynamic programming results obtained optimal production number with cost savings about 2.1%.
Highlights
Industrial world growing fastly causing competition among companies
Optimal production process done by good production planning
Production planning is an activity related to determining what should produce, the quantity produced, when it is produced and the number of resources needed to get the number of production
Summary
Industrial world growing fastly causing competition among companies. Every company required to make continuous improvement and optimize production process. In making of plastic jute bags, company is often experiencing difficulty in making decisions for the determination of optimal production plans. Some research had been done related to production planning [9] Production planning studies in convection company using goal programming. Production planning using hybrid fuzzy multi-objective nonlinear programming model with different goal priorities done in a fuzzy environment to minimize total production costs, carrying and back ordering costs and costs of changes in workforce level (quantitative objectives) and maximize total customer satisfaction (qualitative objective) including the inventory level, demand, labor level, machines capacity, and warehouse space [3]. Production planning using dynamic programming studied in animal feed mills to minimizing the total costs of production and the annual inventory, while at the same time meeting the customer’s demand. This purpose of this research is saving production cost by planning the optimal number of production
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